Thread by @sdgrumbine

First things first we have a sovereign, non-convertible, free floating fiat currency that is backed by an obligation: taxation.
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Second: no one says we can just "print the money"... all dollars are merely a tax IOU and are created by keystrokes. The birth of a DOLLAR is congressional spending and the death of the DOLLAR is taxation

Third: QE (Quantitative Easing) is not creating money. It is merely swapping debt for liquidity. Banks do not lend reserves, so even a cursory understanding of the hierarchy of money would be excellent.

4th: taxes dont fund spending at the federal level but they do at the state level. This is universally true.

Greece is a currency user. Puerto Rico is a currency user. Flint Michigan is a currency user. They are dependent on taxes & investments to fund their operations. #M4M4ALL

The USA, The UK, Australia, Russia, Canada, China and Japan for example are currency issuers. They are state driven fiat currencies.

Some are fixed to a gold peg. Some are fixed to a dollar peg. But all are fixed to a tax obligation that gives value to the currency

The dollar is not backed by oil. It is backed by the tax that drives it. It is constrained only by real resources and not solvency.

Money creation occurs with every single dollar the Federal government spends. An actual new net financial asset.

Everytime a dollar in taxes is handled via end of year or quarter returns, accounts are adjusted and tax dollars are DELETED.

The real constraint on government spending is found in the following conditions:

1. Are we at full employment ? No? Then the deficit is not large enough.

2. Are we a net importer or net exporter? In other words, do we have a current accounts deficit? If so, the Federal spending deficit is not large enough.

3. What is the level of private debt? Do Americans have any disposable income at all? If the private debt is too high, then we need to offset it with spending on the 99% or we will go into recession.

I could go on and on. Perhaps this was helpful, but if not, there are good resources in the links below.

Debunking economic lies helps you put the false mainstream media and conspiracy narratives in their place because they are lethal to Progress.

They have their foundations not in Marx but neo-liberal fairy tales.

Sometimes it is just better to be a student and not presume to teach.

#LEARNMMT

MMT/Monetary Sovereignty Links

Can we print our way out of 'debt':
bloomberg.com/news/videos/20…

Monetary Sovereignty is the foundation of economics, by Rodger Malcolm Mitchell:
mythfighter.com/2010/08/13/mon…

7 Deadly Innocent Frauds, by Warren Mosler:
moslereconomics.com/wp-content/pow…

Money Growth Does Not Cause Inflation:
forbes.com/sites/johnthar…

Taxes for revenue are obsolete, by William K. Black:
neweconomicperspectives.org/2010/04/fed-ch…

Taxpayers don’t fund anything:
bilbo.economicoutlook.net/blog/?p=9281

What taxes are for?:
neweconomicperspectives.org/2014/05/taxes-…

J.D. Alt’s “The Millennials' Money”:

How to Pay for Jill Stein’s Student Debt Forgiveness Plan:
marketwatch.com/story/john-oli…

Replacing budget constraint with Inflation constraint:
neweconomicperspectives.org/2015/01/replac…